NSTS Bancorp, Inc. Annual report pursuant to Section 13 and 15(d)

Note 4 - Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2023

	*December 31, 2023*
	*1-4 family residential*		*Multi-family*			*Commercial*			*Construction*		*Consumer*			*Total*
	(Dollars in thousands)
Year ended:
Beginning balance	$	581	$	19		$	19		$	—	$	5		$	624
Cumulative effect of change in accounting principle		335		23			29			—		(3	)		384
Charge-offs		—		—			—			—		—			—
Recoveries		—		—			—			—		—			—
Net recoveries (charge-offs)		—		—			—			—		—			—
Provision for (release of) credit losses		178		(2	)		(11	)		4		(1	)		168
Ending balance	$	1,094	$	40		$	37		$	4	$	1		$	1,176

	Collectively evaluated				Individually evaluated				Total
	Allowance for loan losses		Recorded investment in loans		Allowance for loan losses		Recorded investment in loans		Allowance for loan losses		Recorded investment in loans
	(Dollars in thousands)
December 31, 2022
1-4 family residential	$	512	$	94,711	$	69	$	873	$	581	$	95,584
Multi-family		19		3,237		—		—		19		3,237
Commercial		19		3,921		—		—		19		3,921
Consumer		5		249		—		—		5		249
Total	$	555	$	102,118	$	69	$	873	$	624	$	102,991

	As of December 31, 2023
	Term loans amortized cost basis by origination year
	2023		2022		2021		Prior		Revolving loans amortized cost basis		Revolving loans converted to term loans amortized cost basis		Total
	(Dollars in thousands)
1-4 family residential
Pass	$	23,395	$	18,950	$	19,605	$	47,517	$	1,414	$	—	$	110,881
Special Mention		—		—		—		—		—		—		—
Substandard		—		—		—		200		—		—		200
Total 1-4 family residential		23,395		18,950		19,605		47,717		1,414		—		111,081
Current year-to-date gross write-offs		—		—		—		—		—		—		—
Multi-family
Pass		—		—		239		2,872		—		—		3,111
Special Mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total multi-family		—		—		239		2,872		—		—		3,111
Current year-to-date gross write-offs		—		—		—		—		—		—		—
Commercial
Pass		186		—		100		3,399		150		—		3,835
Special Mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total commercial		186		—		100		3,399		150		—		3,835
Current year-to-date gross write-offs		—		—		—		—		—		—		—
Construction
Pass		2,508		—		—		—		—		—		2,508
Special Mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total construction		2,508		—		—		—		—		—		2,508
Current year-to-date gross write-offs		—		—		—		—		—		—		—
Consumer
Pass		122		95		28		3		—		—		248
Special Mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total consumer		122		95		28		3		—		—		248
Current year-to-date gross write-offs		—		—		—		—		—		—		—
Total	$	26,211	$	19,045	$	19,972	$	53,991	$	1,564	$	—	$	120,783

	*31-89 Days Past Due and Accruing*		*Greater than 90 Days Past Due and Accruing*		*Non-Accrual*		*Total Past Due and Non-Accrual*		*Current*		*Total Loan Balance*
	(Dollars in thousands)
December 31, 2023
1-4 family residential	$	131	$	—	$	200	$	331	$	110,750	$	111,081
Multi-family		—		—		—		—		3,111		3,111
Commercial		—		—		—		—		3,835		3,835
Construction		—		—		—		—		2,508		2,508
Consumer		—		—		—		—		248		248
Total	$	131	$	—	$	200	$	331	$	120,452	$	120,783
December 31, 2022
1-4 family residential	$	28	$	—	$	154	$	182	$	95,402	$	95,584
Multi-family		—		—		—		—		3,237		3,237
Commercial		—		—		—		—		3,921		3,921
Consumer		—		—		—		—		249		249
Total	$	28	$	—	$	154	$	182	$	102,809	$	102,991

	December 31, 2023				December 31, 2022
	Nonaccrual with no Allowance for Credit Losses		Nonaccrual		Nonaccrual
	(Dollars in thousands)
First mortgage loans
1-4 family residential	$	200	$	200	$	154
Multi-family		—		—		—
Commercial		—		—		—
Construction		—		—		—
Consumer loans		—		—		—
Total loans	$	200	$	200	$	154

	Recorded investment		Unpaid principal balance		Related allowance		Average recorded investment		Interest income recognized
	(Dollars in thousands)
December 31, 2022
With no related allowance recorded
1-4 family residential	$	429	$	635	$	—	$	442	$	29
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Consumer		—		—		—		—		—
Total	$	429	$	635	$	—	$	442	$	29
With a related allowance recorded
1-4 family residential	$	444	$	444	$	69	$	452	$	21
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Consumer		—		—		—		—		—
Total	$	444	$	444	$	69	$	452	$	21
Total individually assessed as of December 31, 2022	$	873	$	1,079	$	69	$	894	$	50